B D. H Goal Kick Sports New Store Financial Model Parameters Store Size (square feet) Total Fixed Assets Straight Line Depreciation period 7,500 280,000 Discount Rate 10% Tax Rate Inflation Rate Cost of Merchandise (% of sales) 33% 289% First Year Sales Revense Annual Growth Rate of Sales 950.000 15% Operating Expenses 30 Rent Per Square Foot S Labor Cost S 150,000 Other Expenses S 235,000 O Model 4. Year Sales Revenue $1,092.500 $1,256,375 $1,444.831 S1,661,556 $950,000 $305,900 $153,000 $229,500 $404,553 S159,181 $266,000 S351,785 $465,236 Cost of Merchandise Labor Cost $162,365 $243,547 $254,372 $150,000 $156,060 5. $238.772 $249,384 Rent $225,000 $234,090 Other Expenses $235,000 $239,700 $244,494 28 $536,037 $392,942 S56,000 $74,000 S164,400 $269.946 Net Operating Income Depreciation Expense 29 $56,000 $56,000 $56,000 $56,000 30 31 32 $213,946 $336,942 $480,037 S108,400 $35,772 Net Income Before Tax S18,000 $70,602 S111.191 SIS8,412 Income Tax $5,940 33 34 $321.625 S72,628 $56,000 $128,628 $12,060 $143,344 $225,751 35 Net After Tax Income S56.000 $199,344 S56,000 $377,625 S56,000 $56,000 Plus Depreciation Expense Anmual Cash Flow 36 $281,751 S68,060 37. 38 $61.873 $106,304 $149,770 $192,440 $234,475 Discounted Cash Flow 39 40 Total Discounted Cash Flow $744,862 41 A2. DATAF Goniick Goel Kick Sports (GKS) aa retal chain that sels youth and adult eoccer equioment. The GKS financal pianting group hes developed a spredsheet model te caleulate the net dicounted an fow of the firat five years of operations for a new store This model is used to assess new locations under consderation for expanaion (a) Use taces formula Audting tools to audin the model and correct any errors found. What is the total discounted cash fow ( dalars) calculated by the corrected spreadsheet. (Hound you anwe to the nearest dollar) (b) Once you are comfortable that the model correct, use Scenano Manager to generate a Scenario Summary report that gves Tta Dacounted Cauh Plow for the folontng scenaris Scenario 32% 24 37% 24 Tax Rate 1 4% 2 Inflation Rate 14% Annual Growth of Sales 26% 18% What is the range of values for the Total Discounted Cash Flow (in dollars) for these scenarios? (Round your answer to the nearest dolar) Need Help?